Quiz 9 - 1. Jeep launched the new Jeep Liberty several...

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1. Jeep launched the new Jeep Liberty several years ago. The Liberty is intended to compete with other moderately-sized SUVs. The marketing department at Jeep wants to determine the Liberty's market share and classification. The market growth rate for moderately-sized SUVs is two percent. Use the following information to determine the Jeep Liberty's relative market share and BCG matrix classification. Market Shares Jeep Liberty 44% Toyota RAV-2 28% Honda CRV 18% Ford Escape 10% Student Response Value Correct Answer Feedback A. 1.57, dog B. .44, cash cow C. .44, star D. .636, question mark E. 1.57, cash cow 100% General Feedback: Lecture page 113 Relative market share = Firm’s raw market share divided by raw market share of firm’s largest competitor A) The relative market share is correct but the Jeep Liberty is not a dog because its relative market share is greater than one. B) The Jeep Liberty is a cash cow but the relative market share is incorrect (.44 is the raw market share). C) The relative market share is incorrect. Jeep Liberty is not a star because in the question it stated that the market growth rate for moderately-sized SUVs is only 2%. D) Jeep Liberty is not a question mark since market growth rate is less than 10%. Also, the relative market share is calculated incorrectly (28%/44% =.636). E) The correct relative market share is 1.57 (44%/28% = 1.57). Jeep Liberty is a cash cow because the market growth rate of moderately-sized SUVs is less than 10% (it is 2%) and its relative market share is greater than 1. Score: 1/1 2.
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Industry beer sales are $400 million. Blue Beer Co. and Brown Beer Co. have sales revenues of $108 million and $64 million, respectively. The total industry marketing effort is $20 million. Blue Beer Co. and Brown Beer Co.'s marketing efforts are $5.4 million and $3.8 million, respectively. What will likely happen to each company's market share in the future? Student Response Value Correct Answer Feedback A. Both Blue and Brown will lose market share. B. Blue will grow market share and Brown will maintain market share. C. Blue will lose market share and Brown will grow market share. D. Both Blue and Brown will grow market share. E. Blue will maintain market share and Brown will grow market share. 100% General Feedback: Lecture page 117 A. Neither of the two companies has a share of voice that is lower than its share of market. B. Blue has a share of voice equal to it share of market, showing that it going to maintain market share. Brown has a share of voice greater than its share of market, showing that it is going to grow market share. C. Blue is not going to lose market share, since it is balancing its share of voice with its share of market, which is a strategy to maintain market share. D. Blue is not going to grow market share, since it is balancing its share of voice with its share of
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Quiz 9 - 1. Jeep launched the new Jeep Liberty several...

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